Decision on Foreign Direct Investment (FDI) in real estate sector, is likely to be taken in the next cabinet meeting which is going to be held on Thursday, said Arun Kumar Misra, Secretary, Ministry of Housing & Urban Poverty Alleviation at an event orgainsed by industry body Assocham in New Delhi today.

"In single-window clearance system,
at least a large part of clearances out of 45 are digitized and
should be online for clearance system. In the last one year, more
than 43 towns in India have adopted the single window clearance
system," said Misra while speaking at 6th Affordable
Housing Summit & Excellence Awards,? organized by the Assocham.

In
Focus

He also pointed out, "Without the
amendment of rent control laws, we really can?t add much to the
system. Nearly 30% people live on rent and more than 10% of houses
are lying vacant because of the rent control laws archives".

"We can't have the central law, it
has to be state-law because the guidelines are already there, and
next group of engagement will have to be amendment of rent control
laws with the state government", added Misra.

The state will have to come out with
the urban housing policy (UHP). The transport and affordable housing
has given us clearly- what exactly requires to be done and I am very
happy that states like Rajasthan, Karnataka and Haryana have taken a
lead in affordable housing policy, said the Secretary.

The revised affordable housing in
partnership schemes is being launched to encourage state concessions
and the creations of Affordable housing stock for construction of
half a million houses for Economically Weaker Section (EWS)/ Lower
Income Group (LIG) segments.

In this scheme, the government aims at
encouraging partnerships between various agencies i.e Central &
State government/ housing boards and development authorities and
Urban Local bodies (ULBs) for the creation of affordable housing,
added Minister.

The scheme now gives increased
subsidies to the tune of Rs. 75,000/- to economically weaker section
to economically weaker sections (EWS) or low income group or LIG
dwelling units of size 21-40 sqmt, in affordable housing projects
being undertaken through various public private partnerships
(PPP).

The Rajiv Rinn Yojana (RRY) scheme
focuses on demand side incentives wherein ministry of housing &
urban poverty alleviation provides 5% interest subsidy on housing
loans up to Rs. 5 Lakh. This scheme is also likely to be launched by
August this year, mentioned Dr. Vyas.

Between Rajiv Awas Yojana (RAY), Rajiv
Rinn Yojana (RRY) and Affordable Housing in partnership schemes
(AHP), the government of India will support establishment of 2.5
million housing units, added Dr. Vyas.

With the effort to reduce the
demand-supply gap in this segment, it is noteworthy that from
2007-2012, housing shortfall has declined from 24.8 million to 18.7
million, a 25% reduction, quoted Dr. Vyas.

The real estate sector in India has
been a high growth story. The construction industry is the second
largest industry of the country after agriculture accounting for 11%
of India?s GDP. Indian construction industry employs 32 million
people and its total market size is estimated at Rs. 2480 billion.

Dr. Vyas said, "Ministry focuses on
housing for the urban poor, housing represents a key component of
economic growth contributing 5% to the GDP and there still being a
shortfall of 18.7% million units. I welcome and laud theses
developers in supporting the government of India in progressing
towards its goal of provision of housing for all."